High River Gold Mines Ltd HRIVF

Alfa Bank Report Severstal Gold Assets

[ccharlwood]

Alfa Banks states that the linked 8 pg. report may have inaccuracies. For instance, to me, the debt looks high and share count low. However, the important part is that Alfa says HRG is trading at 1/3 of what it should be and, therefore, valued at $865M or $1.17/share (based on their share count). They use a 7 times multiple. This share value is much lower than our peer average comparison of $2.95/share (19.3 multiple), but at least it shows a significant improvement to current price. Also, it shows that HRG makes up 55-60% of Severstal's overall gold production.

https://freepdfhosting.com/e7503e06b7.pdf